The Nasdaq-100 index is showing increased volatility compared to the S&P 500, driven by a surge in demand for put options, which are used to hedge against potential declines. This shift from call options to puts reflects growing caution among investors about the future of high-flying tech stocks, particularly as momentum in AI and semiconductor sectors slows. Despite this, call option demand remains relatively high, indicating some ongoing optimism. Seasonal factors like typically lower summer volatility in the S&P 500 also contribute to the widening volatility gap between the two indexes. Investors are watching closely as this could signal potential downside risks for tech stocks ahead.
SK Hynix's options began trading in the U.S. with about 150,000 contracts by midday Tuesday, showing less excitement than expected despite a strong stock rally. The most popular trades were bearish call sales, possibly because leveraged single-stock ...
The Direxion Daily Semiconductor Bull 3X Shares (SOXL) surged nearly 293% year-to-date but recently fell about 30% in the last month, including a sharp 16% drop in one day. SOXL uses leverage to triple daily semiconductor index returns, but this also...
